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Questions About Student Loan Consolidation Rates

Terrible Student Loan Consolidation Rates.?

Calling All Finance Majors…….

I have 6 student loans (federal) for about $60K total balance. One of my loans has an interest rate of 2.8% FIXED. Everything else is a variable rate, presently at ~6.8%. If I consolidate all loans, I’ll end up with about a 5.875% fixed rate. If I don’t include the 2.8% loan in the consolidation, I’ll end up with two loans, the one at 2.8% fixed rate and the consolidated loan which will become a fixed rate at ~6.8%.

The question – I want to preserve the 2.8% part of my student loan with a separate payment BUT I don’t like the 6.8% consolidated fixed loan rate. Are there other alternatives to the rates offered by loan consolidation companies that offer less than a 6.8% rate?

What have you smart gals/guys done to beat these over inflated rates???
Thanks for all advice.

Industry Expert answers:

What I did ?

I kept my low-interest loan (2,9%)

I consolidate my 3 other loans. (5,9% instead of 7,2%)

Good luck !

Where can I find information on the current federal student loan consolidation rate???

I see various rates online. Some as low as 4.7% but is there a government or official site with the information?

Industry Expert answers:

By law, lenders are required to use the same interest rate formula for Consolidation Loans. However, many lenders offer interest-rate reductions for paying on time or via direct debit. It is important to read the fine print and understand how you become qualified for or disqualified for a lender’s borrower benefits programs. Beyond savings, you should consider customer service, flexible repayment options, online account access and applications, reputation and industry experience when selecting a lender.

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